Pixel Consultancy Private Limited vs Linkpoint Advisory Private Limited
- CitationCompany Appeal (AT) (Insolvency) No. 1229 of 2024
Ratio decidendi
The rule this decision rests on
The Tribunal declined to entertain the appeal against the rejection of a Section 7 application and granted liberty to the appellant to file a fresh Section 7 application based on defaults occurring after the Section 10A suspension period. Where the first default falls within the period covered by Section 10A of the Insolvency and Bankruptcy Code, 2016, a financial creditor may nonetheless rely on defaults committed by the corporate debtor after that period in a fresh application under Section 7, and the Tribunal will afford liberty to file such an application in those circumstances.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
In the matter of: Pixel Consultancy Pvt. Ltd. ....Appellant Vs. Linkpoint Advisory Pvt. Ltd. ...Respondent For Appellant Ms. Rashmi Bothra, Advocate. For Respondent Ms. Aparajita Rao, Mr. Sanwal, Advocates.
ORDER
(Hybrid Mode)
12.07.2024: This Appeal has been filed against the order dated
02.01.2024 passed by the Adjudicating Authority (National Company Law
Tribunal), Division Bench (Special), Court No.II, Kolkata by which order
Section 7 application filed by the Appellant has been disposed of.
2. Learned Counsel for the Appellant submits that the application under
Section 7 was filed for an amount of Rs.9,44,51,917/- along with interest. It
is submitted that the application was filed in August 2022 and there were
defaults committed by the corporate debtor subsequent to 24.03.2021. In
paragraph 12 of the appeal, Appellant has given a detailed chart of date of
default and various amount advanced, which is as follows:-
"12. In this regard, default had occurred due to failure of the payment of the interest as well as principal by the Respondent. The first default took place on 24.03.2021 when the first loan fell due alongwith interest and is continuing since then. The amount claimed to be in default is Rs. 9,44,51,917/- including interest @ 18% being Rs.
2 2,83,01,917/- upto 15.07.2022. The details of the disbursement and dates of default have been enclosed in the Company petition at page no 21 marked as Annexure E. the same is provided hereinbelow:-
Details of Loans advanced and date of default for each loan advanced
S. Date of Amount Amount Principal Last Date of No. Disbursem Advanced Refunded Due date of Default ent Refund
1 25-09-2019 1,00,00,000.00 72,50,000.00 27,50,000.00 24-03- 24-03-
2021 2021
2 02-01-2020 25,00,000.00 - 25,00,000.00 02-07- 02-07- 2021 2021
3 29-01-2020 1,00,00,000.00 - 1,00,00,000.0 29-07- 29-07- 0 2021 2021
4 27-02-2020 45,00,000.00 - 45,00,000.00 27-08- 27-08- 2021 2021
5 06-03-2020 2,70,00,000.00 - 2,70,00,000.0 06-09- 06-09- 0 2021 2021
6 05-08-2020 80,00,000.00 - 80,00,000.00 05-02- 05-02- 2022 2022
7 08-10-2020 1,00,00,000.00 - 1,00,00,000.0 08-04- 08-04- 0 2022 2022
8 05-02-2021 4,00,000.00 - 4,00,000.00 24-03- 24-03- 2021 2021
9 17-03-2021 10,00,000.00 - 10,00,000.00 24-03- 24-03- 2021 2021
3. Counsel for the Appellant submits that at best the default which took
place on 24.03.2021 was covered by 10A period but there were other defaults
on which basis Section 7 application was fully maintainable. Since a financial
creditor is entitled to file an application for default which was committed
subsequent to 10 A period.
Company Appeal (AT) (Insolvency) No. 1229 of 2024 3
4. In facts of the present case, we are of the view that ends of justice be
served in giving liberty to Appellant to file a fresh application under Section 7
with regard to default which were committed by corporate debtor subsequent
to 10A period.
5. In view of the aforesaid, we see no reason to entertain this appeal. The
appeal is disposed of with liberty aforesaid.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
Anjali/nn
Company Appeal (AT) (Insolvency) No. 1229 of 2024
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